Award Winning – 2024 Awards for Publication Excellence (APEX) for Feature Writing
By Edward J. Defort
(From the October 2023 issue of The Director)
Consumers today, less educated about death, want access to transparent information – at their convenience and on their own time – so they can make educated decisions. This is a key finding in the 2023 Funeral and Cemetery Consumer Behavior Study conducted by The Foresight Companies.
Funeral service has not provided this to consumers in a time where they can find and purchase literally almost anything else online. This has created the consumer perception that the profession is not transparent or has something to hide – thus, the profession has a trust and confidence issue.
The survey postulates that funeral service is at a crossroads. The profession had largely been dealing with an older generation of consumers more "traditional" in their methods. Internet and especially online commerce have ushered in an era where technology and transparency are table stakes for consumers across nearly every aspect of retail buying, from which the funeral service profession has largely been insulated. The global pandemic served as a catalyst to accelerate that trend among older consumers as well.
New to the survey this year are similar questions aimed at both consumers and those inside funeral service.
"I think the most telling, but maybe not the most surprising, is the gap between what the profession perceives to be the attitudes and behaviors of the consumer versus the reality of the consumer," said Chris Cruger, CEO of The Foresight Companies. "There is a disconnect between what we perceive the consumer to understand [and] what they really do." Foresight partner Doug Gober agreed. "I think the disconnect between the profession and the consumer was the probably the most surprising – or at least [the most] eye-opening – outcome," he said.
"We had done a lot of work in past surveys related to COVID – before, during and after. But by adding this element to this year’s research – not only asking consumers to answer the questions but also asking a significant number of funeral directors essentially the same questions – the gap between what we perceive and what the consumer perceives is telling."
When the topic of educating consumers about funeral service is discussed, we normally think of community service. "We think of going out into the community and doing some kind of presentation for the Kiwanis Club where we tell people about funeral service," Gober illustrated. "However, this idea of every family, every option, every time seems to just totally go past most [funeral directors]; it doesn’t seem to be happening.
"[Those are] the conversations we need to have today with our own staff to improve what we’re doing with client families, to help them understand more what we’re trying to communicate," he continued. "Looking at some of the numbers [in the survey], it becomes obvious that certain elements, certain options are just not being discussed."
What Say the Numbers?
According to the survey, trust in various professional institutions has fallen, with funeral service not immune. It found that 76% of consumers trust their funeral director and 75% trust their cemetery advisors. Also, 54% of consumers trust funeral and cemetery professionals overall. And while 95% of consumers are satisfied with their primary-care physicians, the healthcare profession was found to be the second-lowest-rated industry, just ahead of TV/internet providers and below rental car companies.
The survey also found that funeral professionals’ perception of themselves falls far above consumers’ perception of them. Also, funeral service’s perception of its honesty is significantly higher than consumers’ perception, with funeral service professionals at 76% and consumers at 54%.
According to the survey, there is also an unfavorable gap in the profession’s responsiveness to cultural traditions – 74% of funeral service professionals compared with 56% of consumers. When it comes to responsiveness to problems, funeral directors scored themselves at 66%, while consumer opinion came in at 56%.
Of course, the survey is not all bad news. There are several areas where consumers rate funeral service higher than the profession rates itself, including its ability to provide a modern and contemporary environment, the technology-based products and services provided, as well as the support available to family and friends following the services.
What should the profession do to improve consumers’ perception of what funeral service does? Foresight suggests several steps:
- Do not assume you know best; truly listen to families and guests (transparency).
- Educate, educate, educate. "You have worked hard to become licensed, and there is absolute value to the noble work you do in providing your services and merchandise. It is time to educate consumers about your professional skills and experience and what value you can bring to their lives.
- Online pricing: Proactively and strategically present how you are priced and explain why based on your professional skills, service offerings and amenities.
- Make a deliberate investment in improving your website to represent your business virtually as well as improve your online ratings, reviews and presence.
- Leverage your upgraded website to welcome those wanting to educate themselves on their own time and at their own convenience about the profession as a whole but more specifically about how you might serve them.
- Make things convenient for families and online seekers. Consumers today are looking primarily for the value of what they will/may experience, and convenience is an integral part of that consumer experience. Giving consumers all the information they need, as well as options to decide and act in one place, is now the norm.
As pointed out earlier by Cruger and Gober, there is a wide knowledge gap over funeral goods and services. Funeral service believes consumer awareness about cremation memorialization is at 93%. Consumers say it’s more like 43%.
Funeral service’s perception of its honesty is significantly higher than consumers’ perception, at 76% and 54% respectively.
Funeral professionals put consumer awareness of memorial products at 89%, while consumers say 57%. The education gap is at its widest when talking about online cremation arrangements, which funeral service professionals put at 84% and consumers log as 14%.
Consumers don’t know what funeral homes and cemeteries have to offer – 42% don’t know enough about funeral home and cemetery products and services. "I think there needs to be some of the traditional grassroots, of being out in the community – whether they do lunch and learns or what have you," said Cruger. "Just being a part of the community is a big component of that.
"Funeral service is just not as engaged in being a part of the community," he added. "The more that’s kept behind a big old curtain, [the more it] fosters this great unknown."
Gober said the level of community engagement differs market by market, depending on how engaged the funeral director is in communicating the message.
"If you were to go to a market where a funeral home spends big on print and TV ads, there’s a much higher degree of awareness about funeral service," he said. "This is just my own premise, but my guess is that awareness and trust in our profession would be significantly higher."
Reality Check
Foresight found that while 25% of consumers say they would like a traditional remembrance to take place at a funeral home and 31% say they would prefer a remembrance off-site, a larger proportion of consumers (44%) do not know where they want their remembrance to take place.
"My mindset is really, what happens once we do get them to walk in the door?" Gober asked. "What occurs when they walk in the door and we already have the client? Are we educating them at that point on what their choices and options are? Not only are we not pre-educating them, but I think it’s even more obvious that we’re suffering to a degree on the arranger side of things. We need to do a better job of teaching the arranger how to make sure consumers know what’s available once we do have a family in front of us.
"If we’ve already got the call, why can’t we at least take the time and energy to let them know what their choices are," he added. "Cremations with services are still lagging way behind after a solid 50 years of preparation."
When it comes to cremation preferences, 51% of those surveyed said they are more likely to select cremation than they were a few years ago; 38% would prefer to have cremated remains memorialized; 36% would like help with a loved one’s cremated remains; 36% prefer to have cremated remains scattered; and 32% prefer to keep the cremated remains at home. Of note, 24% are willing to pay more for green cremation.
"It has to do with the mindset of the funeral director that cremation is equal to burial," Gober said. "Burial is disposition and cremation is preparation. What you do with the cremated remains is actually disposition."
The Foresight survey found that the percentage of respondent who stated a strong preference for cremation (57%) is in line with industry norms. However, the survey also found that half of funeral service practitioners do not help facilitate celebrations or catering for cremation families.
For years, surveys have found that people chose cremation because it was the lower-cost alternative. That’s no longer the case. According to Foresight, those who prefer cremation expect their cremation cost to be more than $5,000.
While some funeral directors might be reluctant to try to steer consumers away from selecting direct cremation because that was their stated preference, the survey found that the vast majority of consumers (77%) would like some type of service of remembrance if/when they are cremated. Drilling down a little further, 36% want a religious component to their service and 41% want a nonreligious service of remembrance, while 23% want no service at all, which represents a huge opportunity for cremation memorialization.
Awareness, Trust and Transparency
According to the survey, funeral service professionals incorrectly assume that consumers know more about their goods and services than they actually do. When it comes to cremation memorialization, 93% of funeral service practitioners think consumers are aware of their offerings, while just 43% of consumers say they are aware. The disparity continues among memorial products – funeral practitioners say 89% of consumers are aware, but only 57% of consumers say they are aware.
Consumers may not know what funeral service practitioners do nor the value they bring, but they do know what they want. Foresight asked consumers how important it is that the industry offer the following products and services: pricing online (68%), ability to complete paperwork online (48%), host informational sessions (41%), offer online arrangements (38%), offer the latest technology (38%), event planning/concierge services (37%), facilitate catering (36%), reception hall with catering (30%) and "other services" (14%).
Building trust is directly related to transparency. The profession has been reluctant to provide pricing online, which greatly hinders the confidence of consumers. However, even with the growing expectation of pricing online being mandated by the FTC, there is resistance to provide it, and this will continue to negatively impact how consumers perceive the profession.
"When you do not disclose your pricing online in a clear manner for consumers to understand, they think you have something to hide," Cruger said. Even with older consumers, as they continue to gain regular exposure to online shopping, the lack of access to easily explained online pricing is glaring in its absence. The survey found that 70% of respondents say trust decreases if prices are not online. Furthermore, 65% don’t understand why companies don’t have all products, services and prices online. The telling statistic: More than half of survey respondents (53%) don’t purchase products from companies that don’t have good online reviews.
Last year, nearly 7 of 10 respondents to the Foresight survey said they would not do business with companies that did not provide pricing online.
Should mandated online pricing become a reality, are funeral directors ready? The survey says… no. Only 33% of funeral service practitioners surveyed said they are prepared for a new FTC mandate. The survey found that 68% of funeral consumers and 67% of cemetery customers want online pricing.
Consumers who believe the profession is being transparent are 35% more satisfied with their experience, and that aligns with an increased spend. Consumers who believe they are being treated fairly are willing to spend 16% more on average than others.
How important is trust? It’s a lot more important than cost. The survey revealed that 61% of consumers choose a location based on factors related to trust. These include firm used previously (31%), referral from a friend (15%), history in the community (7%) and referral from a healthcare/hospice/social worker, and referral from clergy, each at 4%.
With the increase of online sales across all platforms, a company’s online reputation has never mattered more. "What does your virtual presence tell me about what’s available once I get there?" Gober asked. "Does it give me information up front and clearly without getting too deep?
The survey found that 68% of funeral consumers and 67% of cemetery customers want online pricing.
"People want to know that pricing is there even after they’ve already chosen to come to your funeral home," he added. "They still love the idea that you’re posting your pricing, even though you’re their guy. They just like to know that it’s online. It might not even influence their decision on who their provider is going to be, but they just like to know it’s there. They feel more comfortable that you’re not hiding something."
Said Cruger: "You lose credibility by not having price information. If you’re not showing it to me, well, that creates a level of distrust. My contention from day one: Nobody ever wants to look at the GPL, but they just want to have some perception as to what the real value proposition is – what am I going to get and what’s it going to cost, roughly."
Cruger suggested that mandating the GPL on websites could offer funeral directors some unique educational opportunities down the road through the use of artificial intelligence. "You obviously are going to have to be careful what the FTC mandates, but one of the things I’ve thought about is, what if you had a simple little bot that plugs into a website and asks visitors five or six questions?" he said. "The visitor might get an answer like, ‘Your funeral at XYZ Funeral Home will cost between $3,500 and $4,500 depending on certain details.’
"There’s got to be a way that we could just simplify this, make it specific to the provider," he said. "You’re not looking to be precise, but it will allow you to give somebody that clarity.
"Sure, we would prefer to sit down and talk with them in person, but I am a firm believer that the more information you give people, the more educated and the more likely they are to be inclined to do business with you," Cruger said.
The survey found that 76% of consumers say that online reviews and ratings are important. Of note, 95% of consumers read online reviews.
Proactively Cover the Gap
Foresight said consumer sentiment is clear. At almost no other time have consumers provided such a clear road map to how to serve them. "Making the experience better is more than just starting the service on time and error free," the survey said. "Transparency and service delivery provide a foundation to a customer engaged, providing positive reviews and advocating for your business when asked for referrals by others."
Foresight listed several suggestions of what the profession can do to deliver a better experience:
- Making funerals more celebratory and creating good memories for the family of the deceased
- Encouraging transparency and fair business practices throughout the profession with online pricing
- Providing greater information about what the profession does, including information and explanation on options for services and merchandise
- Making things easier and more convenient for the consumer as part of their entire experience.
The running theme throughout this survey is the disparity between what funeral professionals think consumers want compared with what consumers actually say. According to the survey, funeral professionals identified the most critical areas that need to be addressed as cremation, consumer education and staffing. This differs from the most critical pain points uncovered in consumers’ feedback.
In large part, the profession is unprepared and in some cases unwilling to meet or address the changes the FTC is recommending.
Not surprisingly, there is a difference in perception between older, more tenured professionals and younger, less experienced members of the profession. Both groups agree, however, on the need to teach directors how to deal with nonceremonial cremation requests by families and to maintain relevance and adapt to changes in the industry.
If he were a funeral director right now, Gober said, he’d be proactive on the whole deal. "Not only would I put my pricing online, but I would put a menu with pictures of what I’m describing that the prices relate to," he said. "You know these people are generally vulnerable under time and pressure, and they’re inexperienced. We need to thoroughly present this process clearly enough so that anybody who goes to the website can understand it. I believe that funeral directors today who are proactive about this can attract additional business in this market. They might even move a little bit of market share just because they’re the one doing it and nobody else in that market is.
"I’m going to be as proactive as possible – and this is not just about putting your GPL on your website," he added. "That accomplishes nothing, or at the very least accomplishes the fact that your prices are there (and may satisfy a requirement). Illustrating it in a way that I can understand it and see it pictorially is the key. The smart guys are going to get ahead of that and embrace it."
Consumers are thirsting for information, Cruger said, and yet many firms choose not to do it until somebody forces the issue. "I firmly believe that if you’re willing to be just a little bit more progressive than [your competitors], opportunities are tremendous," he said. "If those firms will not adapt and conform to what the consumer is asking of us, somebody else is going to. And I hate to say it, but the ones who fail to do it are going to be left behind.
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